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Elegant (VII)

Topic of Presentation

Chowdhury Omor Faruque

ID NO. 173

• As of 2006, Proctor & Gamble delivered products under 300 brands to nearly five billion

consumers in more than 140 countries around the world. P&G employed about 110,000

employees in approximately 80 countries worldwide. P&G is the number one U.S. maker of

household products, with nearly 300 brands in five main categories:

• Baby,

• Feminine & family care,

• Fabric & home care,

• Beauty care,

• Health care and food & beverage.

• Overtime P&G has proven to be an innovator in creating brands and understanding

consumers by making extensive use of marketing research. Building brands has been a

cornerstone of P&G’s success.

• In the early days P&G would mass market through television and other sources because this

was effective at the time. They have charged their key strategy from mass marketing to

consumer targeting. Their market research is so extensive that they even develop new

product based on research to meet the demands of consumer. P&G’s innovative approach

puts the consumer at the centre of everything they do.

• P&G marketing has been innovative and pioneering over the years and one would expect

the same from them in the future they are constantly using marketing to solve the problem

of today and to build brands that will be continue to be leader tomorrow.

About the case

Origin: William Procter, a candlemaker, and James Gamble, a soapmaker,

immigrated from England and Ireland respectively. They settled in Cincinnati

initially and met when they married sisters, Olivia and Elizabeth Norris.

Alexander Norris, their father-in-law, called a meeting in which he persuaded

his new sons-in-law to become business partners. On October 31, 1837, as a

result of the suggestion, Procter & Gamble was born.

Logo:

Procter & Gamble (P&G) is a Fortune 500 American MNC headquartered in

downtown Cincinnati, Ohio and manufactures a wide range of consumer goods.

• In 2011, P&G made $82.6 billion dollars in sales. Fortune magazine ranked P&G

at fifth place of the "World's Most Admired Companies" list, which was up from

sixth place in 2010. Procter & Gamble is the only Fortune 500 company to issue

C Share common stock.

P&G (Procter & Gamble)- At a Glance

• Focused on providing branded customer goods. Its goal is to provide products of

superior quality & improve the lives of the world’s consumer.

• Its products are sold in more than 180 countries primarily through merchandisers,

grocery stores, membership club stores, drug stores and high frequency stores. It also

focuses on the expansion of department stores, perfumeries, pharmacies, saloons & e-

commerce.

• In 2007, it established five sustainability strategies and goals for 2012. In March 2009,

it increased its goals to reflect our progress and to demonstrate our ongoing

commitment to sustainable, responsible growth.

Strategies followed by P&G are:

Continued…

Products OperationsSocial

Responsibility Employees Stakeholders

P&G Products

Md. Moben Ahmed

ID NO. 151

Use the internet to determine the market shares of

the major toothpaste brands for the last

calendar year.

Question

• For decades Crest toothpaste was the leading brand in the market. When Crest was launched in

1955 it was a revolutionary brand—it was the first brand that would fight cavities. Such a USP gave

it a significant advantage over all other brands. Since that time, however, Crest has stayed with

pretty much the same story. But a few years ago Crest lost its leadership position to Colgate. Crest

did not keep pace with changes in the marketplace. Sitting on its laurels and relying on past

reputation is not a practice a brand leader should follow. Such a practice was permeating Procter &

Gamble, and consequently many of its big brands were suffering. Bad breath, stained teeth, and

sensitive gums have been issues in recent years. While other toothpaste makers moved in to cater

to these needs, Crest kept on fighting cavities. Arm & Hammer launched a baking soda formula,

Rembrandt Between 1987 and 1997, Crest’s market share dropped from 39 percent to 27 percent. In

1997, Colgate launched an innovative toothpaste product that seemed to do everything: it fought

cavities, tartar, plaque, bad breath, and introduced anti-aging and whitening formulas, and Aqua

Fresh offered a fresh breath formula. most importantly, gingivitis. Gingivitis is a gum disease that

all dentists harp about. By the end of 1998, Colgate had grabbed 30 percent of the market, mainly

due to the popularity of its Total brand. Crest’s share stood at 26 percent.

• Market shares of the major toothpaste brands are given below:

Answer

Brand Company Market Share

2010

Market Share

2009

Colgate Colgate-Palmolive 32.1 30.1

Crest Procter & Gamble 27.4 27.3

Aquafresh GlaxoSmithKline 10.5 10.9

Arm & Hammer Church & Dwight 8.3 6.6

Mentadent Unilever 5.7 6.6

Sensodyne Block Drug 4.2 4.1

Rembrandt Gillette 3.1 2.8

Close Up Unilever 1.6 1.7

Ultra Brite Colgate-Palmolive 1.3 1.3

Pepsodent Unilever 1.0 1.1

Market Share

Rumana

ID NO. O87

What type of syndicate data will be useful in

addressing the marketing research problem?

Question

Syndicated data are not collected for the purpose of marketing research problems specific to

individual clients, but the data and report supplied to client companies can be personalized to

fit particular needs.

Syndicated data offered by marketing research organizations that provide information from a

common database to different firms that subscribe to their services. Household/consumer data

will be useful in addressing the marketing research problem because we can directly collect

information from consumer and we will obtain exact & specific information that reduces the

error of marketing research problem.

Household data may be obtained from survey, purchase & media panels & electronic scanner

services.

Survey mainly conducted at regular intervals. it is the most flexible way to obtaining data. It is

mainly uses in the sector of market segmentation, advertising theme selection advertising

effectiveness.

In case of purchase panels households provide specific information regularly over an extended

period of time. Record purchase behavior can be linked to the demographic, psychographic

characteristics. It’s helpful to forecasting sales, market share & trends, brand loyalty &

switching, packaging & distribution.

Answer

• In case of media panels electronic devices automatically recording behavior

supplemented by a diary. It helps to establishing advertising rates, selecting

media programs establishing viewer profile.

• In case of scanner volume tracking data household purchases recorded through

electronic scanners in supermarket. Data reflect actuapurchases, timely data,

less expensive. It is helpful in price tracking, modeling, and effectiveness of in-

store promotion.

• In case of scanner panels with cable TV scanner panels of households that

subscribe to cable TV. Data reflect actual purchases, link panel data to household

characteristics. It is helpful to copy testing, new product testing & positioning.

• At last we say household data will be useful in addressing the marketing research

problem because it provides specific information & reliable, accurate information

it is also time consuming& less expensive that is helpful to reduce the error of

marketing research problem.

Continued…

Md. Al Amin

ID NO. 089

Discuss the role of qualitative research in helping P&G

to increase its share of the Toothpaste market.

Question

Role of qualitative research to increase market share:

• Market share can be increased by the following way:

• Attractive advertisement.

• Promotion and campaign.

• Appropriate segmentation of market.

• Customized product solution.

• Focusing on consumer’s interest and preference on product.

• Increasing breadth & depth of the product in the market.

• Understanding consumers need and developing product to satisfy that need in

the best possible way.

• Attractive & affordable packaging.

• Linking cultural background with the product.

• Making product available to consumer with great efficiency but not increasing

the price.

• Continuous research of consumers need and continuous development of product

according to the need.

• Surveillance on competitor’s activities on the market and taking appropriate

action.

• Providing consumers value added service related to use and consumption of

product.

Answer

• Now let’s consider the role of qualitative research to increase the market share of P & G in Toothpaste

market.

• Qualitative research is used to gain qualitative understanding of the values lying reasons and motivations.

• There are several reasons to use qualitative research. It is not always possible or desirable, to use fully

structured or formal methods to obtain information from respondents. People may be unwilling or unable to

answer certain questions. People are unwilling to give thoughtful answers to the questions that invade their

privacy, embarrass them or have a negative impact on their ego or status.

• Second, people may be unable to provide accurate answer to questions that tap their subconscious mind. The

value, emotional drives and emotional drives at the subconscious level and disguised from the outer world by

rationalization and other ego defense.

• To overcome this problem qualitative research is more effective to find accurate information.

• Qualitative research will help P & G to identify the customs preference customs need cultural combination of

toothpaste and them segmenting the market with appropriate base. For example marketing executives can

identify some of the following qualitative variable to identify consumer preference on tooth paste market:

1. Cavity & Gum protection

2. Whiteness of teeth.

3. Taste

4. Fresh breath

5. Price

Continued…

• Based on this variable he/she will design product with minimum

appeal to consume

• Then he will develop advertising strategy by conducting research on

the following qualitative variable

• Preference of color &contrast on add.

• Preference of advertising medium ( TV/ News paper)

• Preference of cultural elements.

• Preference of quality, quantity, fragrance, or other variable.

• Focus of consumer attention.

• By developing appropriate advertising strategy, he will be able to

communicate the presence of the product on the market place.

Then if these efforts are integrated with other marketing program,

toothpaste market share is likely to increase.

Continued…

Md. Abdur Rakib

ID NO. 041

P & G has developed new toothpaste that provide

tooth and gum protection from 24 hours after each

brushing. It would like to determine consumer’s

response to this new toothpaste before introducing it

in the market place. If a survey is to be conducted to

determine consumers preferences, which survey

method should be used and why?

Question

For determining consumer’s preference to new toothpaste, it is better to use personal

interviewing method.

Personal interviewing:

• In case of personal interviewing, it is more effective to use in Home personal interview.

Why:

• In personal in Home interviews, respondents are interviewed face to face in their home. The

interviewer’s task is to contract the responder. Ask the questions and record the responses.

By personal interviewing consumer’s preferences on different variable like color, fragrance

etc. can be determined. It is also important to specify how they prefer tooth and gum

protection in their consideration.

Answer

Personal interviewing

1. In Home2. Mall

intercept3. Computer

assisted

Anjuman Ara

ID NO. 139

What sampling plan should be adopted for the

survey of tooth paste brand? How should the

sample size be determined?

Question

• Sampling plan to be adopted:

Answer

Define the target

population

Determine the

sampling frame

Select a sampling

technology

Determine the sample

size

Execute the

sampling process

Sampling Design Process

• Target population: Middle class and high class people who used branded toothpaste.

• Sampling frame: Sampling frame is the representation of the elements of the target

populations. Hence sampling frame includes people with different profession, like

teacher, doctor, engineer etc.

• Sampling techniques: sampling technique should be sampling without replacement.

Sampling technique in which an element can not be included in the sample more

than once.

• Here probability sampling technique is likely to be included. It is possible to pre

specify every potential sample of a given size that could be drawn from the

population.

• In this case simple random sampling is likely to be selected. It is a probability

sampling technique in which each element in the population has a known and equal

probability of selector. Every element is selected independently of every other

element and the sample is drawn by a random procedure from a sampling frame.

Continued…

Md. Shajahan Sarkar

ID NO. 145

What charts would be useful in presenting your

results to P&G management?

Question

– Round or Pie charts: In a pie chart the area of

each section, as a percentage of the total

area of the circle, reflects the percentage

associated with the value of a specific

variable.

– Pictograph: Pictograph uses small picture or

symbols to display the data.

– Histogram & Bar chart: A bar chart display

data in various bars that may be positioned

horizontally or vertically. A histogram is a

vertical bar chart in which the height of the

bar represents the relative or cumulative

frequency of occurrence of a specific

variable.

Answer

Any Question???